A personal loan can help you pay for something special like a holiday or home renovations. Make sure you can afford to borrow, and then shop around to get the best deal on interest rates, fees and charges.
How Personal Loans work
If you get a personal loan, you must repay the money you borrow within a specific time, usually 1 to 5 years. You also pay interest on the amount you borrow, plus fees and charges.
What you need to give the credit provider
All credit providers are required by law to lend you money responsibly. This means they must not lend you money if they think the credit is unsuitable for you.
The credit provider may look at your credit report and ask for:
- Bank account statements
- Copies of other credit contracts or bills
This is so they can verify your ability to meet the loan repayments without financial hardship.
Secured and unsecured loans
Secured loans usually offer lower interest rates than unsecured loans, but you need to put up an asset, like your car or home, as ‘security’ to get the loan. If you don’t repay the loan, the credit provider may, in some circumstances, sell your asset to get its money back without first going to court.
With unsecured loans you don’t have to put up an asset as security, but the interest rate is usually higher. To get an unsecured loan, you must convince the credit provider that you can repay the loan. If you don’t repay the loan, the credit provider may take you to court to get its money back.
If you are looking for a Personal Loan, contact Red Tick Home Loans today for more information. Alternatively, download the form below, complete it and return it to us with your contact details and we will be in touch within 24 hours.